Farming, Saturday, December 12,1970
On Restoring Hog Prices
Marvin Garner made the following com
ments in the November issue of National-
Pork Producers Council News:
■‘We don’t seem to be able to help the
retailer price pork in his counters, but we
can have something to say about the ton
nage of total pork we have to sell. In anti
cipation of the break in the hog market that
occurred the last of October we started en
couraging topping out of your market hogs
at 215 lbs. over two months before. Not
enough listened.
“On Tuesday, October 13, a 215 lb.
butcher would bring $18.25 or $39.24 on the
Sioux City Market. Two weeks later, Octo
ber 27, the same butcher now weighing 240
lbs. would bring $16.75 for a gross of
$39.20. Eating six pounds of feed per day at
5 cents per pound would be $4.20 worth of
feed that went into that butcher in that two
weeks period and yet the gross to the pro
ducer was the same. However, the crux of
it all was that 25 lbs. of additional pork was
marketed into an already loaded pipeline
and we netted only $35.00 instead of $39.00
from each hog.
“Knowing that we were heading into a
stress market, in the first nine months of
1970, the average weight of our market
hogs was up 1.9 lbs. per head over the
same period in 1969. This meant that there
was over 115 million lbs. of pork marketed
in 1970 than off the same number of hogs in
1969. This is fine as long as price structure
will support it, but let's study our lesson
and adjust marketing weights during this
high slaughter period. It is the most econo
mic self-help program available today.”
Garner’s advice and his supporting
figures are indisputable.
Avoid Boom and Bust Farming
What’s with pork prices?
A year ago about this time cattlemen
were asking why retail beef prices failed to
reflect a drop in cattle prices over the pre
vious six months.
Now, the same thing’s happening with
pork.
Larger hog supplies have driven down
prices received by farmers to about two
thirds of what they were at the start of
1970.
The wholesale value of pork in Febru
ary - September dropped by around a dime
per pound The retail price, however, de
clined only 5 cents a pound. In other w ords,
the wholesale-retail spread widened by a
nickel.
How come 7 Here's one possible ex
planation each time retailers’ operating
costs, such as wages, go up storeowners
may absorb tne higher costs in tne short
run. They don’t want to run the risk of dis
couraging consumer buying, particularly in
times of rising prices at the retail level
But when wholesale prices subside, that’s
also when meat retailers could choose to
take up the slack in their margins, explains
the USDA.
Trends in beef and pork spreads over
the past 20 years show retail margins tend
to widen when wholesale prices weaken,
and decrease when the reverse is true, ac
cording to the USDA.
Pork has generally fit the pattern. But
the increase in the wholesale-retail spread
LANCASTER FARMING
Lancaster County’s Own Farm Weekly
P. O. Box 266 - Lititz, Pa. 17543
Office: 22 E Mam St., Lititz, Pa. 17543
Phone: Lancaster 394-3047 or Lititz 626-2191
Robert G. Campbell, Advertising Director
Zane Wilson, Managing Editor
Subscription pi ice $2 per year in Lancaster
Countj. S 3 elsewhere
Established November 4,1955
Published e’. t.y Saturday by Lancaster
Farming Lititz, Pa.
Second Class Postage paid at Lititz Pa
17543
Member of Newspaper Farm Editors Assn
Pa. Newsn.;; ei i’obli'hns /'ssouation and
National Newspaper Association
Farmers had ample warning of the
impending hog market bust. Reports were
widespread about the increased hog produc
tion and probable market bust
Even when market busts in particular
farm products, such as swine, become in
evitable because of over production, farm
ers still have considerable leeway in de
termining how serious the situation will be.
By their actions, even after the bust starts,
farmers can determine how severe the bust
will be and how long it will last.
Reduce The Supply
When prices turn down in response to
an over-supply situation, the need is obvi
ously for a reduced supply. But if farmers
hold their hogs longer in hopes that the
market will somehow turn up, they have
added more pounds of pork to the already
glutted market. The heavier hogs make a
bad situation much worse.
It takes a brave and wise farmer to
unload his animals at lighter weights when
prices are low. It’s difficult to avoid the
temptation to hang on just a little longer for
the market upturn.
But everyone hanging on can be j'ust
enough to insure the market doesn’t turn up.
It’s generally better to take the small
losses than to keep throwing more feed into
bigger animals, which can only make the
market worse.
Farmers have much of the say in this
process. Just minor cutbacks by each farm
er in the number of hogs he markets and
in the weights of those marketed hogs,
along with the efforts already underway to
increase pork consumption, will rapidly re
store a healthy hog market.
in February-September of the current year
has -been somejvhat greater than would" be
expected' from the price relationships dur
ing the'past two decades, the USD A adds.
The situation, we believe, once again
proves that farmers are the big losers in a
widely fluctuating market, or boom and
bust cycles. At the peak of the boom, which
occurs during a market shortage, the farm
er gets bad press and draws consumer ire
for “making a killing” and forcing retail
prices up. '
But during the bust, the market o\er
supply, the farmer gets clobbered. During
these busts, which can run for many
months, the farmer either loses money or
works for practically nothing something
which no one else seems willing to do
these days.
While the farmer is suffering in the
bust. howe\er. it's business as usual for the
consumer, because the price the consumer
pays is about the same or only slightly low
er.
So the farmer gets a bad image with the
consumer during the boom, and he doesn’t
get any sympathy during the bust. It’s a
“heads I win and tails you lose” situation,
with the farmer the sure loser.
The secret would seem to be for farm
ers to accept a modest but stable profit
margin by keeping supply closely aligned
with demand. But in farming, this obvious
solution has almost never worked.
When there’s a profit, operations have
always expanded until the profits dried up,
forcing the expansion to stop or reverse.
Maybe it will always be that way.
Understanding it, however, may help
farmers to keep from getting o\erly confi
dent when the market is good, and overly
depressed when it’s not good.
Understanding it also may help the in
dividual farmer to keep his cool and main
tain a sound and stable operation over a
long period of time While some farmers,
can successfully anticipate the market,
many w ho try to mo\ e in and out find them
sel\es 01 er stocked when pr.ces are low
and under stocked when prices are high
Fanners who ha\e been around a long
time know' that things a\ eragc out. Success
js a matter oi running an efficient opera
tion an the time
To Inspect Tobacco
Barn Chimneys
The tobacco stripping season
is at hand and many stoves will
be burning in tobacco cellars
in the months ahead. A close in
spection of the stove pipes and
the entire chimney is very
much in order each fall Tight
connections are necessary to
keep sparks from getting out
into the building Mortar may
need to be replaced between
bricks or blocks. A few hours
spent on this inspection and re
pairs now may save a serious
fire and big losses.
> scouring. To prevent drafts the
-To Enforce Farm Pond Safety farrowing pen should have solid
Farm ponds are just as popu- sides at least a foot high. The
lar when ice covered as for hog market is not too encourag
swimming during hot weather; ing at this time, but producers
also, they may be just as dan- should still try to save every
gerous if skaters are not care- pig. Exhaust fans may be need
ful and if proper rescue equip- ed to remove the extra moisture
ment is not at hand Thickness in the house and help keep it
oi the ice is not an accurate dry.
GUARANTEED!
Lesion lor December 13,1970
3aelqrcu'id stripin’** Molthevf 19 16-
h to!** 0.57-&2, John 1512-20,
1 Pei»r3 <M?
J>pvohen»l t»#hrtws 12 1-6.
Many people ha.’O the idea that
C/.riatia-iil'i is supposed to be a
J.in.l 01 ifuararkc against most
forms of suffering and opposition.
7ha> is tirucily the idea that one
gets iron, tne New Testament.
Arroimn? to )nhn, for example,
;sus u arns his
.sciples; “If the
orid hates jou.
io\v that it has
ited me. before
m ... If they
■rsecuted me,
tey will perse
i.te you” (John
18 20a).
Nor did the
Re\. Althousc passage of time
change this alarming prediction,
for Peter, years later, was to
write “Beloved, do not be sur
prised at the fiery ordeal which
comes upon you to prove you, as
though something stiange were
happening to you” (1 Peter 4:
12). Righteous living, rather than
a guarantee of popularity, actu
ally increases the risk of oppo
sition.” ... keep your conscience
clear, so that, when you are
abused, those who revile your
good behavior in Christ may be
put to shame. For it is better to
suffer for doing right . . . than
for doing wrong” (1 Peter 3:16,
17).
What kind of “suffering”?
For most of us, these predic
tions may be hard to understand.
Few of us, as far as can see
have ever had to sufurr anything
for our faith. Few of us know of
anyone in our acquaintance who
have had to suffer because of
their discipleship. Nor can most
of us forsee any reason m the
future why we should need to
anticipate sufiennc ’ faith.
For Full Market Reports
Read Lancaster Farming
IS
NOW
TIME...
THE
By Max Smith
Lancaster County Agent
measure of its strength. Slush
ice is only, about half as strong
as clear, blue ice; new ice is
stronger than old ice. 'Pond
owners are urged to keep a
wooden ladder, boards, and a
coil of rope handy for rescue
purposes. Urge safety from all
skaters.
To Protect Baby Pigs
For best results new-born
pigs should be kept warm, dry,
and in draft-free quarters.'The
first few days are very impor
tant and the pigs should not get
chilled because of the danger of
Perhaps the rub here it the
word “suffering.” As soon as y<m
read this word you are likely to
see in your mind’s eye some of
the following:
Jesus suffering on the cross...
Paul suffering persecution for
his mission work... '
Roman Christians sufferingand
dying in the arenas of Rome ...
Reformers suffering torture at
the hands of the Inquisition. - -
Missionaries suffering at -the
hands of uncomprehending snvr
ages... . , j
All these," however, are
mote for most of us—long ago
and far away. Or are they?
Paying a price
“Suffering,” so my dictionary
tells me, means “to be subjected
to pain, distress, injury, lass or
anything unpleasant.” Thus it can
mean physical hardship, but it
doesn’t have to. Suffering can
mean emotional distress or any
unpleasantness. Christ’s suffering
on the cross was far more than
physical, terrible as that was.
Therefore, although most of us
may not be called upon to bear
physical pain for our faith here
in Amenca today, isn’t it true
that if we truly try to follow
Christ we will encounter periodic
distress, opposition, ridicule, and
rejection by others? Isn’t it true
that Christian discipleship always
has some kind of a price?
Christian discipleship carries
with it a guarantee, but it is not
an escape danse. What is guaran
teed is the sustaining power of
God in the midst of these: “There
fore, let those who suffer accord
ing to God’s will do right and en
trust their souls to a faithful cre
ator” (1 Peter 4'18).
(Based on outlines cop> righted fc/ the
Division of Christian Educci v on # National
Council of *he Churches nf Christ
USA. Released by Community
Service}
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